Mortgage lender Lower has entered into a significant strategic partnership with real estate brokerage HomeSmart, aiming to expand its lending services across a vast national network. The agreement provides Lower with direct access to approximately 25,000 real estate agents, positioning the lender for substantial growth in the competitive home purchase market.
This move is part of a broader industry trend where mortgage and real estate companies are forming closer ties to streamline the home buying process and secure a steady flow of customers. For Ohio-based Lower, this alliance is a key step in its ambition to climb the ranks of national lenders.
Key Takeaways
- Mortgage lender Lower has formed a strategic national marketing agreement with real estate brokerage HomeSmart.
- The partnership gives Lower direct access to HomeSmart's network of around 25,000 agents across 48 states.
- This is not a merger or acquisition, but a collaboration focused on joint marketing and providing seamless mortgage solutions to HomeSmart clients.
- The deal follows Lower's recent acquisition of real estate portal Movoto, indicating a clear strategy to integrate real estate and lending services.
- The collaboration reflects a wider industry trend of vertical integration, as lenders seek to capture home buyers earlier in their journey.
A Strategic Alliance to Streamline Home Buying
The collaboration between Lower and HomeSmart is defined as a “strategic national marketing agreement.” This structure allows both companies to maintain their independence while leveraging each other's strengths. The core of the partnership involves creating a more integrated experience for home buyers working with HomeSmart agents.
Under the agreement, Lower and HomeSmart will launch joint marketing campaigns. These initiatives will feature co-branded resources designed to highlight the combined benefits of their platforms. The goal is to present a unified front to consumers, making the transition from finding a home to securing a mortgage feel like a single, seamless process.
A critical component of the partnership is providing HomeSmart’s extensive agent network with specialized tools and training. Lower will equip agents with resources to help their clients navigate the mortgage process more efficiently, potentially leading to faster closing times. This direct line to a preferred lender is designed to simplify the financing stage for thousands of transactions nationwide.
What is a 100% Commission Brokerage?
HomeSmart operates as the nation's largest 100% commission real estate brokerage. In this model, agents keep the full commission from a sale instead of splitting it with the brokerage. In return, agents typically pay the brokerage a monthly fee and a flat fee per transaction. This model is often attractive to high-producing, independent agents.
Lower's Calculated Path to National Prominence
This partnership is the latest in a series of strategic moves by Lower to significantly expand its market share. Currently ranked as a top-50 national lender, the company has shown clear ambitions to break into the top 25. The alliance with HomeSmart provides a powerful new channel for customer acquisition, tapping into a network that spans 250 offices in 48 states.
Just months ago, Lower made another significant move by acquiring Movoto, the fifth-largest real estate portal in the United States. In 2024 alone, Movoto recorded 150 million visits, demonstrating its substantial reach. Following the acquisition, the website now directs mortgage inquiries to its affiliate, Lower, effectively turning web traffic into loan leads.
By the Numbers: The Scale of the Partnership
- 25,000: The approximate number of real estate agents in HomeSmart's network.
- 48: The number of states where HomeSmart operates.
- 250: The number of HomeSmart offices across the country.
- 150 Million: The number of visits to Movoto, Lower's other recent acquisition, in 2024.
By combining the digital reach of Movoto with the on-the-ground presence of HomeSmart's agents, Lower is building a comprehensive ecosystem. This two-pronged approach—capturing potential buyers online and through agent relationships—mirrors strategies employed by some of the largest players in the industry.
The Growing Trend of Real Estate and Mortgage Integration
The Lower-HomeSmart deal is not happening in a vacuum. It is part of a larger consolidation and integration trend sweeping the real estate and mortgage industries. With rising mortgage rates since 2022, the profitable refinancing boom has ended. Lenders are now fiercely competing for a smaller pool of home purchase loans, making relationships with real estate agents more critical than ever.
Industry giants have made similar moves. Rocket Mortgage's parent company, for example, acquired Redfin, illustrating a powerful combination of lending and brokerage services. These companies are building what some call a "flywheel," an ecosystem where they can capture a customer at the start of their home search and retain them through the mortgage process and even into loan servicing.
These partnerships are built on a simple premise: the first point of contact often wins the business. Many home buyers rely on their real estate agent's recommendation for a mortgage lender. By becoming the preferred, integrated lender for a massive brokerage like HomeSmart, Lower positions itself to be the first and most convenient option for a significant number of buyers.
What This Means for Home Buyers
For consumers, the increasing integration of real estate and lending services offers both convenience and potential pitfalls. A seamless process, where an agent can quickly connect a buyer with a trusted lending partner, can reduce stress and speed up transactions. The specialized tools and communication channels promised by the Lower-HomeSmart partnership aim to deliver exactly that.
However, this convenience can come at a cost if buyers don't explore all their options. When a real estate agent recommends an affiliated or preferred lender, it's always wise for the buyer to do their own due diligence. Financial experts consistently advise that obtaining multiple mortgage quotes is one of the most effective ways to save money on a home loan.
Studies have shown that borrowers who get more than one rate quote can save thousands of dollars over the life of their loan.
While an agent's recommendation can be a great starting point, comparing it with offers from other banks, credit unions, or mortgage brokers ensures you are getting a competitive rate and terms. As these industry partnerships become more common, informed consumers who take the time to shop around will be in the best position to secure the most favorable financing for their new home.
